DavorCoin: Yet more “lending platform” bullsh*t

[As of Feb. 7, DavorCoin ended its lending program, and its token price tumbled to less than $0.10. I’m sure this was merely a coincidence, but just five days earlier, Texas authorities had sent DavorCoin a cease-and-desist order, alleging it was selling securities without a license and making fraudulent claims.]

Now that Bitconnect is a dead duck, and BitconnectX is still in its crowdsale phase, people with an overwhelming urge to waste money on fake “get rich quick” schemes have turned to DavorCoin — a Bitconnect imitator.

Long story short. Don’t send your money to Davorcoin. You will only be disappointed. It’s just another version of Bitconnect, and a slew of other “lending programs” pretending to be cryptocurrency projects.

How are Bitconnect and DavorCoin similar?

Both strongly suggest daily returns of 0-2% are possible.

Both have “lending platforms.” Bitconnect used the argle-bargle of lending to a “volatility software” program, while DavorCoin says it can use arbitrage1 to net such great returns.

Both make a concerted effort to hide the team behind the project. DavorCoin alleges it was “created by bankers and traders from major financial institutions (based in London, Paris and other EU cities),” but oddly doesn’t say who these boffins are.

Both have internal exchanges, which charge fees to trade between Bitcoin, their own coin, and fiat currency, and have listed their coins on small, external exchanges.

Both encourage staking of their coins, and promise returns to stakeholders.

Some of the same YouTubers who promoted Bitconnect are now promoting DavorCoin, in order to get people in their downlines.

Bitconnect never published a whitepaper2 (neither has BitconnectX), but DavorCoin has. It’s a one-page PDF file that’s virtually identical to the website. So, in other words, it’s not a whitepaper.

Another difference: Bitconnect’s site is orange. DavorCoin’s is green.

Gee, it looks a lot like Bitconnect’s interest rate chart

So, what happened to Bitconnect?

While the operators of the platform blamed bad press, pending legal action by securities regulators in two states of the USA, and a self-described Dedicated Denial of Service (DDOS) attack for the closing of Bitconnect’s lending and exchange money-making arms, the more probable reason is they ran out of money and couldn’t pay investors the promised returns, especially in a falling Bitcoin market.

So, they exited, made the grand gesture of reimbursing investors with now-severely devalued Bitconnect Coin tokens, and encouraged people to use those almost worthless tokens to buy the new BCCX tokens with a limited time only 1 BCC = 3 BCCX exchange rate.

Given that DavorCoin has essentially the same model, why would anyone think its future will be any different?

Stay away!

—————
Footnotes:

Arbitrage — buying and selling an asset with different prices at different exchanges; arbitrage requires the investor to have accounts at each exchange and often different bank accounts in each jurisdiction or location. Several “investment programs,” such as coince.com (now defunct), promise lofty arbitrage returns.

Whitepaper — a lengthy, detailed description of a cryptocurrency project, outlining technical aspects, missions and goals, and often including carefully worded legal statements that no returns are promised or even possible. Usually, developers and officers are listed by name and contact information provided.